Investing in Renewable Energy in India: Insights from the Latest Statistics
India is rapidly emerging as a global leader in renewable energy, with ambitious targets to achieve 450 GW of energy from the solar power plant in India capacity by 2030. The country’s renewable energy sector has been growing at an impressive rate, with solar and wind energy leading the charge.
The Growth of Renewable Energy in India
India’s renewable energy sector has been growing rapidly, with a cumulative renewable energy capacity of 98.4 GW as of October 2021. Solar energy accounts for the largest share of India’s renewable energy capacity, with 48.9 GW installed, followed by wind energy with 39.2 GW. Other renewable energy sources such as hydropower, bioenergy, and waste-to-energy contribute to India’s renewable energy mix.
The Indian government has set ambitious targets to achieve 175 GW renewable energy capacity by 2022 and 450 GW by 2030. These targets are supported by a range of policy initiatives and incentives, such as feed-in tariffs, renewable purchase obligations, and tax exemptions, to encourage investment in renewable energy.
The Business Case for Investing in Renewable Energy in India
Cost Competitiveness
Renewable energy in India has become cost-competitive with conventional energy sources, making it an attractive investment option for corporates. The cost of solar and wind energy has declined significantly in recent years, driven by technological advancements, economies of scale, and favorable policy support. According to the International Renewable Energy Agency (IRENA), the levelized cost of electricity (LCOE) for utility-scale solar photovoltaic (PV) in India fell by 80% between 2010 and 2020, while the LCOE for onshore wind declined by 47%.
Energy Security
Investing in top solar companies in India can help corporations enhance their energy security by diversifying their energy mix and reducing their dependence on fossil fuels. This can help corporations manage their energy costs and mitigate the risks of volatile fossil fuel prices.
Brand Image and Corporate Social Responsibility (CSR)
Investing in renewable energy can enhance a corporation’s brand image and reputation, demonstrating its commitment to sustainability and corporate social responsibility (CSR). Renewable energy is a clean and sustainable renew power source, and investing in it can help corporations reduce their carbon footprint and contribute to India’s sustainable development goals. This can help to enhance their brand image and reputation, leading to greater customer loyalty and brand recognition.
Access to Government Incentives and Support
The Indian government provides a range of incentives and support for investment in renewable energy, such as tax exemptions, subsidies, and preferential tariffs. These incentives can significantly reduce the cost of investing in renewable energy, making it more attractive for corporates. In addition, the government has implemented a range of policy initiatives to facilitate the deployment of renewable energy from the thermal power plant in India, such as net metering and open access, enabling corporates to sell excess renewable energy back to the grid.
In A Nutshell
Investing in renewable energy from the power plants in India can provide a range of benefits for corporates. The latest statistics demonstrate that the renewable energy sector in India is growing rapidly, with solar and wind energy leading the way. With ambitious targets set by the Indian government and a supportive policy environment, there has never been a better time for corporates to invest in renewable energy in India.
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